China's Wealth of Risks

By

Tom Orlik

Updated Dec. 6, 2012 10:40 a.m. ET

A sleeper risk for the stability of China's banking system is showing signs of stirring.

Angry customers took to the streets of Shanghai earlier this week, demanding compensation after investments worth a total of 140 million yuan ($22.5 million) offered by Huaxia Bank Co. turned sour. Shares in Huaxia fell 4.2% in the Shanghai market on Monday,...